Time2Future’s summary of BCG AI study

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In January 2024, BCG (its BCG X division) released interesting results from its survey of more than 1,400 senior executives.
Time2Future has a summary of key information from this study.

Key Takeaways

BCG’s survey of 1,400+ C-suite executives reveals that GenAI is quickly changing the way companies do business — and big gaps are emerging between the winners and the observers.

• 54% of leaders expect AI and GenAI to deliver cost savings in 2024. Of those, roughly half anticipate cost savings in excess of 10%. But 90% are either waiting for GenAI to move beyond the hype or experimenting in small ways. We call them observers.
• Winners recognize that extraordinary opportunities for productivity gains — as well as topline growth — are within reach right now.
• Five characteristics set the winners apart from the observers: investment in productivity and topline growth; systematic upskilling; vigilance about AI cost of use; a focus on building strategic relationships; and implementation of responsible AI principles.

BCG recommend three value plays to maximize GenAI’s potential:

1. Deploy GenAI in everyday tasks to realize 10% to 20% productivity potential. Select and test GenAI tools, deliver massive upskilling, roll out solutions to support workers in day-to-day tasks, and carefully evaluate the costs of deployment.
2. Reshape critical functions for 30% to 50% enhancement in efficiency and effectiveness. Anticipate the impact of GenAI on your workforce and core functions, create new roles, reallocate budgets, and guide a series of pilots that can reliably scale up.
3. Invent new GenAI business models to build a long-term competitive advantage. Develop a strong customer-centric approach, and leverage first-party data and intellectual property to create interactions that customers can’t find anywhere else.

One of the main challenges that executives highlight: lack of talent and skills (62%). Only 6% of companies have managed to train more than 25% of their employees on GenAI tools so far.

In short, despite awareness of the need for increased investment in AI, too many organizations are slow to embrace the revolution.

What are your thoughts on this issue?

by Time2Future

All data for this article is from the From Potential to Profit with GenAI and is publicly available. All conclusions and insights in this article are the opinion of the editors; if used, a link to the Time2Future AI Guide is required.